Kirloskar acquires Aban Construction for Rs 57 crore
Pumps-maker and turnkey projects company Kirloskar Brothers Limited has acquired 100 per cent equity of Chennai-based Aban Construction Private Limited.
KBL has acquired Aban Construction on a debt-free basis for a total consideration of Rs 57.7 crore, a company statement said. The company executed the necessary share purchase agreement in Chennai on September 29.
ICICI Securities acted as the sole adviser to the deal for Kirloskar Brothers. The present turnover of Aban Construction is Rs 90 crore.
Post acquisition, the company will continue to function with the same name and would be a wholly- owned subsidiary of KBL.
KBL chairman and managing Sanjay Kirloskar said the company expected Aban Constructions to supplement KBL’s existing set up to work as engineering, procurement and construction (EPC) contractor for various ongoing and upcoming projects.
“We see significant synergy benefits between the core business of KBL and the construction business. KBL plans to aggressively grow the areas of business of Aban Construction by combining the focus on quality of both the companies and by leveraging the capabilities developed in the people and systems of Aban Construction,” Kirloskar said.
Aban Constructions Pvt Ltd (ACPL) belonged to the Aban Group of Companies.
It specialises in various construction activities including tunnels, flyovers, and cross country pipelines for oil, natural gas and other infrastructure projects.